Janata Dal (United) chief Sharad Yadav on Monday suggested selling of diesel at higher prices to private car owners, hotels and malls to fund fuel subsidy for farmers and public transport sector.

In a letter to Petroleum Minister S Jaipal Reddy, the NDA convenor suggested that government should sell diesel to cell tower companies, hotels, malls and private car owners at a premium and use the profit to fund subsidies for farmers and the public transport sector.

"I request you to go for

double pricing of diesel, where the priority sector comprising farmers and public transport sector should only be given subsidy and the subsidy should be met by those sectors which are affluent..." Yadav wrote.

Quoting Green Peace figures, he said Rs 2600 crore (Rs 26 billion) worth of diesel subsidy is being used by cellphone operators who own the cell towers.

He said hotels and malls use diesel for power back up which amount to 75 per cent of subsidy bill of the government.

He said while the government has justified diesel price hike, the resulting inflation will hit the common man, besides the farmers.